International edition
June 12, 2021

Many online gaming firms have withdrawn from the US

US law hits PartyGaming profits

(US).- Internet gambling firm Partygaming saw pre-tax profits fall 57% in 2006, as it began reshaping after a crackdown on internet gaming in the US. The company said that legislation making it practically illegal to trade in the US, where it had generated 75% of its earnings, had proved a "bitter blow".

P

rofits were us$ 138.9 million, after the firm spent us$ 250.4 million on reorganising costs, mainly after the US ruling. However, business elsewhere was in "excellent shape", it said.

Like other gaming firms including 888.com and Sportingbet, Gibraltar-based US Partygaming withdrew from the US and began focusing on other markets. In October, President George Bush signed the Unlawful Internet Gambling Enforcement Act, making it, in effect, illegal for firms to collect money there.

Total revenue from its websites, which include PartyGammon.com and EmpirePoker.com as well as the Partygaming brand, was up 13% to us$ 1.1 billion.

“While the decision to stop accepting customers from the US was a bitter blow for our business, our continuing operations have grown strongly,’’ Chief Executive Officer Mitch Garber said in the statement.

PartyGaming would consider big or small acquisitions, Garber said, though he is “very content with where we are at right now.” The company agreed in December to buy gambling web sites from Empire Online Ltd. and Intercontinental Online Gaming Ltd. as the US law sent companies rushing to replace sales.

“It’s a very good opportunity for us to step back and breathe for a minute. We need to see whether we are better off alone in a strong leadership position or whether we need to take on another business,” Garber added.

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